The most annoying thing you may experience in life is having bad credit, because it leads to hardships. It can limit opportunities and deny you of financial options. You can repair it though, and make steps to prevent it from spiraling down further.
You may be able to get a secured credit card even if your poor credit has prevented you from getting other credit cards. This card is very easy to get, because you put money into an account ahead of time and then spend from that, so the bank doesn’t have to worry about not getting their money. If you utilize a credit card responsibly, it can aid in the repair of your credit rating.
When you are trying to clear up your credit contact your credit companies. By doing this, you will keep your credit from getting worse by making sure that your debt does not increase. Talk to the company and see if you can change your due date or monthly fees.
Credit Counseling
Make sure you check out any credit counseling agency you consider using. While some counselors are legitimate, offering genuinely helpful services, others have ulterior motives. Some are simply fraudulent and are out to get your money. Smart consumers will always check to see that credit counseling agencies are, in fact, legitimate before working with them.
Know how debt settlements will influence your credit score prior to making a decision. Some ways of dealing with debt repayment are better for your credit score than others, so make sure you are achieving the best outcome for you before you sign anything. They do not care about the effects of what they do to your credit score and are just in it for the money.
Read your negative reports carefully when attempting to rebuild your credit. Even though the particular credit item may not accurate, finding an error in the amount, date, or something else can cause the entire item to be stricken from your report.
Anything on your credit report that you feel is inaccurate should be disputed. Draft a dispute letter that will go to each credit rating agency that shows an error, and prepare any supporting documents. Mail your dispute documents to the agency using certified mail and a return receipt so that you can prove the agency received them.
When you start fixing your credit, pay down balances on the credit cards as soon as you can. Pay off accounts with the highest interest rates first. This action will show creditors that you are being responsible with credit.
Credit Report
Paying your credit cards on time keeps you in good standing on your credit report. Every time you pay late it is put on your credit report and will hurt you if you ever need a loan taken out.
It is important to read all credit card statements you receive. Ensure that all of the listed charges are purchases that you made, keeping an eye out for fraudulent charges. You are the only person that is responsible for making sure the statements are error free.
Lowering the balances on any currently revolving accounts will increase your credit score. Simply lowering the balances on your open credit accounts can give quite a boost to your credit scores. The FICO system makes a note to your credit report every time your account balance reaches a new 20% increment of your total available credit.
You may want to justify yourself, but the statement has no effect on whether a lender will extend credit to you or not. It is irrelevant. The action of making a statement about your negative history will work against you as it highlight your mistakes rather than downplaying them.
Avoid using your credit cards at all. Try to make purchases using cash only. If you must use your credit card, pay it back in full.
Collection Agency
Having to deal with a collection agency can be extremely stressful. If a debt collection agency is harassing you, writing a cease and desist letter can stop the harassment. Sending the letter does not mean you no longer have to pay the bill, it only stops the collection agency from calling.
When attempting to fix your credit score, exercise caution when it comes to attorneys and legal teams that advertise instant repair of credit. Because so many people these days suffer from credit problems, attorneys and scam artists have come up with ways to charge a high price for repair schemes that can be illegal and useless. Do your homework and check out any attorney before you hire one to help with credit repair.
Simple tips like these will help you fix your credit problems and keep your credit healthy. The time you invest educating yourself regarding credit score repair is worth every minute.
